In Johannesburg, both equities and bonds have rallied to their best levels since before the 1998 emerging markets crisis. Sharply-reduced government borrowing, headline inflation at a 31-year low, receding concerns

During 1999, the Zimbabwe dollar has been pegged at Z$38 to the US unit, despite inflation of 58% in the first 10 months.

about Y2K and a stable rand have boosted investor confidence. In addition, the South African economy is at long last emerging from two years of near-recession during which GDP growth averaged only 0.75%. In mid-November the market climbed to a 1999 high of 7,500 and with further interest rate cuts likely early in 2000, the JSE seems set to move up to 9,000. The main cloud on the horizon is renewed inflation fears caused by the steep rise in oil prices, which pushed producer price inflation up to 6% in October

How they fared. African Stock Markets During 1999

Market Global Price Index (US $) October 1999 - % change since December 1998 Exchange Rate (against US $). Change since December 1998

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Tunisian stock prices rose by more than a third in 1999, with strong institutional support for manufacturing and leasing firms listed on the bourse, which pushed the market 7% higher in October alone.

The main interest in the Moroccan market has centered around privatisation issues. The government recently sold its 51% controlling stake in the fertilizer group, Fertima for US $23.7 million, while promising to sell up to 40% of its stake in the national carrier Royal Air Maroc. The largest state-owned bank, Banque Centrale Populaire is also to be privatised, some time next year. In local currency terms, prices have fluctuated narrowly during 1999 with a clear-cut trend, but with the Dirham down 6% over the year, dollar prices have weakened slightly.

Share prices recovered some lost ground in Ghana in the second half of 1999 but with the exchange rate sliding 19% against the dollar, dollar returns have fallen 7% during 1999. The economy is under pressure due to weak prices for its two main exports, cocoa and gold, and more recently, the steep rise in oil prices. The general manager of the Ghana Stock Exchange, Mr S. B. Tweneboh says foreign investors are no longer active in the market, largely due to the slide in the Cedi.

Nigeria's share market has steadied after the sharp losses in August-September. By mid-November, the index at 5064 was some 4% above its low for the year, which is disappointing given the strength of oil earnings and the government's success in containing inflation. In dollar terms, prices are down 13.5% in 1999, roughly half of which represents Naira depreciation.

An important new listing was that of the South African satellite TV group M-Net/Supersport, capitalised at N26 billion (US $265 million), making it the largest company on the NSE